After extensive and exhausting research for the past few months on our newest product “Clean Edge”, in which many of our internal departments and managers have contributed invaluable knowledge, time and energy in seeing that Clean Edge has an efficacious launch in the super-premium non-disposable razor market, I was appointed by Mr. Quimby to spearhead a recommendation to the executive steering committee on my proposals for the branding, positioning and marketing budget allocation of Clean Edge’s launch. I have included in this memo my proposals as well as the research that supports my conclusions.…
* The company’s positioning strategy was successful in differentiating its product from existing men’s and women’s shaving gel (1986).…
Gillette dominates 70% of global razor market; their strategy is to keep on producing new products, developing new innovations, and remaining as the market leader in men’s grooming market. Gillette introduced its first razor in 1903; by 1971, they invented Trac II “the world’s first two-blade razor”. Comparing to the original one-bladed razor, the two blades work better. Then they came out with Altra, the razor with a pivoting head, in 1977. The Sensor came out soon after with spring-loaded blades; the spring-mounted blades allow the razor to adjust to the contours of user’s face. The SensorExcel was the first razor to include microfins on the cartridge head; the microfins give users a closer, more comfortable shave. This was the start of many new technological inventions that Gillette is producing. Most of these early inventions are more for the disposable usage because the design and features are simpler; the price is also more affordable.…
Gillette is moving into a new market with a large advertising budget and a strong distribution chain. I expect sales in the first year to reach 3.495 million units, or roughly $3.39 million. This would represent a 15% market share of the standard quality market. With a projected market growth rate of 30% each year and an annual advertising budget of $1.2 million, sales figures are expected to grow to 23.96 million units ($23.24 million) in year five. This figure will represent a 36% market share.…
Any company’s assets are either financed by its debt or by its equity. The Weighted Average Cost of Capital is the average costs of these sources of financing, each of which is weighted by its respective use in the given situation. By taking the weighted average, we can see how much interest the company has to pay for every dollar it finances. Basically, the WACC is the minimum required return that the company must earn to satisfy its creditors, owners, and other providers of capital, or they will invest in another company that has higher returns. In this case, I will first address the issues with Cohen’s calculation, and then analyze an new WACC to decide whether we should invest in Nike Inc.…
Maintain company harmonized portfolio: Gillette ‘shaving‘ vs. Old Spice ‘grooming‘. To continue with ‘grooming‘ functional products for Old Spice.…
In the past, nondisposable razors merely served as hair removing tool for the vast majority of the population. However, according to Exhibit 1, as personal images became important in social life, hair removing routine became a means of gaining confidence for some people. For this reason, customers started to seek nondisposable razor that not only effectively removes hair but also protects skin, and further gives them sense of luxury by utilizing the best technology. Understanding customers’ tendency to always search for newest and advanced products, Paramount developed Clean Edge using their unique technology. Although they were confident about quality of their product, their competitive position was not stable. They had two big competitors, Benet & Klein and Prince which already had loyal customers throughout the world, not to mention other new competitors that started to threaten Paramount with their groundbreaking products. Moreover, because Benet & Klein and Prince’s expenditures in advertising exceeded those of Paramount, it was difficult for Paramount to take away the market share and brand recognition.…
Newman’s article discusses the advertising and marketing angles taken by Gillette, the razor company. In 2001, Gillette launched their three-blade Venus razor (Newman, 2008). Over the years, Gillette has improved upon the original three-blade Venus, and in 2008 launched the Gillette Venus Embrace (Newman, 2008). The Venus Embrace was the first five-blade razor for women, and launched the largest advertising campaign on the female side of the razor business in seven years (Newman, 2008).…
Competition: Paramount’s main competitor in non disposable razor category in 2010 are Prince, B&K, Radiance health and other substituted products. Prince sold non disposable razors in super-premium category. Prince had gained #1 spot in terms of retail dollar sales up until 2009. Notable feature of B&K another competitor was that they entered the market in this non disposable razor category only in 1985. However, they managed to reach #3 in market share and unit-volumes by superior technology and releasing superpremium products. New entrants were coming to market with super premium products, technology and greater advertising dollars to gain market share. Paramount’s clean edge should compete with Radiance Naiv in test markets. Naiv had already acquired 13% market share in test markets. Radiance and Paramount were fierce competitors and Paramount had to launch a new technology in Super Premium segment to regain market share and continue to exist as a global leader in this category.…
Paramount’s newest non-disposable razor, Clean Edge, has brought a new hope for the company whose other products are either on the mature stage of product life cycle or on the declining stage. Clean Edge’s improved design provides superior performance and hence the top management is extremely excited. They need to come up with a marketing strategy including product positioning, brand name & marketing budget allocation for the upcoming launch. Another area of concern is how to deal with the cannibalization effect on the other range of non-disposable razors sold by Paramount.…
Currently, Gillette’s operating segments include personal grooming, small appliances, and oral care products, and the portable power segment. In the portable power segment, Duracell’s major competitors consist of Energizer and Rayovac while new and emerging ones included Sony, Kodak, Panasonic, and other private label brands. The collective entrance of these competitors in the 1990s is the primary reasons for Gillette’s lack of success in the battery industry, discussed below.…
1. The non-disposable razor market has, and will continue, to show growth in future years. Trends indicate that this growth will be fueled by innovations and new products. Consumer trends, increasing retail shelf-space, media attention and mainstream acceptance of male-grooming support this forecast, and indicates that “Social/Emotional” and “Aeshetic shavers are likely to be a growing segment of the overall market. Exhibit one indicates that these users currently account for 67% of the total market. This bodes well for Clean Edge.…
“P&G Signs Deal to Acquire The Gillette Company: Raises Long-Term Sales Growth Outlook”, The Procter & Gamble Company,January 28, 2005…
Gillette protects its industry leadership on the back of intensive expenditure in R&D and the careful recording of the experiences that men have using Gillette razors. Armed with its superior knowledge on shavers and shaving, Gillette manages to outgun the competition by constantly leaping forward with novel products, which therefore have superior quality.…
The Gillette Company has a long history of being 'the first to market...' in its own areas of operation.…